Chapter 10. Construction Management at Risk
Regulation .01 Definitions.LinkCopy Citation
A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Construction management at risk” means a project delivery method wherein a construction manager provides a range of preconstruction services and construction management services which may include, but are not limited to, cost estimation and consultation regarding the design of the project, prequalifying and evaluating trade contractors and subcontractors, awarding the trade contracts and subcontracts, scheduling, cost control, and value engineering.
(2)
“Construction manager” means the sole proprietorship, partnership, corporation, or other legal entity that provides construction management services.
(3)
“Guaranteed maximum price (GMP)” means the agreed dollar amount for the construction and construction management services, including the specified scope of work, the cost of the trade work, the general conditions, contingency, and the fees charged by the construction management firm.
(4)
“Preconstruction services” means services provided by the construction manager before construction which include, but are not limited to, constructability analysis, value engineering, scheduling, site assessments, and cost estimates.
(5)
“Trade contract” means an agreement which sets out the terms and conditions upon which the construction manager engages trade contractors.
(6)
“Trade contractor” means a subcontractor who specializes in a particular aspect of a construction project such as plumbing, electrical, or painting.
Regulation .02 General.LinkCopy Citation
A.
Procurement agencies not otherwise exempt from this title may not use the construction management at risk project delivery method for construction projects estimated at less than $10,000,000 without prior approval from the Board of Public Works.
B.
Cost savings resulting from projects completed below the guaranteed maximum price may be shared between the procurement agency and the construction manager.
Regulation .03 Selection of the Construction Manager.LinkCopy Citation
A.
Procurement agencies shall use the competitive sealed proposals procurement method under COMAR 21.05.03 to select the construction manager.
B.
Procurement agencies shall obtain separate Board of Public Works approval for preconstruction services, regardless of dollar value, and each GMP that exceeds the Board delegations of procurement and contracting authority in COMAR 21.02.01.04.
Regulation .04 Guaranteed Maximum Price.LinkCopy Citation
A.
The construction manager warrants that the work will be completed at or below the GMP with provisions for change order adjustments for owner-directed work that is outside the agreed-upon GMP work scope and not otherwise covered by the contingency.
B.
The GMP shall be based on design documents that are not less developed than 50 percent construction documents for the applicable scope of work.
C.
The GMP shall be agreed to as an amendment to the contract between the procurement agency and the construction manager.
Regulation .05 Trade Contracts.LinkCopy Citation
A.
The construction manager assumes all risk for the cost, schedule, and performance of the trade contracts.
B.
Trade contracts may be procured concurrently or over the life of the project.
C.
The construction manager or procurement unit shall send the solicitation notice for trade proposals to the Governor's Office of Small, Minority & Women Business Affairs and publish the notice in a newspaper of general circulation near the project, or Internet media, or both, at least 14 days before trade proposals are due. If the construction manager restricts trade proposals to prequalified contractors, the solicitation notice shall include information on the prequalification process.
D.
The procurement agency shall publish notice of the project, contact information of the construction manager, and general information on trade proposal solicitation on its website and eMaryland Marketplace.
E.
The construction manager may, subject to approval by the procurement officer, select trade contractors based on evaluation factors other than low bid, including, but not limited to, MBE participation, past performance, and special qualifications.
F.
The construction manager shall comply with the State's Nondiscrimination Clause as provided in State Finance and Procurement Article, §13-219, Annotated Code of Maryland, and the Commercial Nondiscrimination Policy as provided in State Finance and Procurement Article, Title 19, Annotated Code of Maryland.
Chapter annotations
Authority: State Finance and Procurement Article, §§12-101 and 13-103—13-104, Annotated Code of Maryland
History: Effective date: August 23, 2010 (37:17 Md. R. 1186)